Nvidia’s shares fell sharply after the market closed on Wednesday, slipping more than 8% to $159.51 in after‑hours trading. The decline follows reports that the company’s board is preparing to remove co‑founder and chief executive Jensen Huang, a move prompted by an internal investigation into the CEO’s conduct.
Board deliberations and federal scrutiny
According to sources cited by CBS News, the Trump administration is aware that Nvidia’s board is weighing a vote to oust Huang. The Wall Street Journal was the first outlet to disclose that board members are actively preparing a removal plan. The investigation, launched earlier this week, centers on Huang’s admission of an affair and alleged personal ties to Alice Huang, a Chinese business executive who U.S. intelligence agencies suspect of acting as an asset of China’s Ministry of State Security.
President Donald Trump confirmed that the FBI is also probing the romantic and business connections between Jensen Huang and Alice Huang, who was a senior executive at a Singapore‑based company that ranks among Nvidia’s largest foreign customers. Lawmakers in Congress are expected to question Nvidia executives about whether the company’s advanced chips are being routed to China through third‑party channels.
Market reaction and investor concerns
The stock tumble adds to a broader erosion of Nvidia’s market value. Since the company announced the probe into Huang’s conduct on November 8, its valuation has contracted by more than $450 billion. Analysts note that Huang’s departure would be a significant blow because the firm lacks a clear successor. Dan Ives, a technology analyst with Yorkville Ives, said investors will now focus on potential leadership replacements, short‑term strategic implications, and the outcomes of ongoing government investigations.
Adam Crisafulli of Vital Knowledge highlighted Huang’s prominence, describing him as “the most prominent executive at the most prominent company sitting at the center of the world’s most important industry.” Crisafulli added that Huang foresaw the rise of artificial intelligence years before the launch of ChatGPT and positioned Nvidia to capitalize on that trend.
Corporate governance and internal response
Nvidia’s code of conduct emphasizes that personal relationships can create conflicts of interest and obliges employees to uphold high ethical standards. Corporate‑governance experts said Huang’s alleged relationship with Alice Huang appears to breach those policies. The code instructs staff to consider whether an action could be defended if made public on social media or known to colleagues, advising that if the answer is no, the action should not proceed.
In a Sunday message to employees, Jensen Huang acknowledged the affair, apologized to his wife and their two children—both of whom also work at Nvidia—and expressed remorse, writing, “There is no excuse for what I did. I am deeply sorry.” Nvidia’s 11‑person board includes Huang himself, while the remaining directors are listed as independent in a regulatory filing.
As the situation unfolds, the combination of internal governance concerns, federal investigations, and heightened congressional interest creates a complex backdrop for Nvidia’s future. The company’s ability to navigate leadership uncertainty while maintaining its pivotal role in supplying AI‑focused hardware will be closely watched by investors and policymakers alike.
Norman Pearlstine is the Executive Editor and Co-Founder at News Raise. With over two decades of experience across financial journalism, corporate governance, and market analysis, Norman leads the editorial direction and ensures strict adherence to journalistic accuracy and ethics.
